Getting Effective Transmission Built on the SPP-MISO Seam. MISO-SPP IPSAC Meeting March 2016

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1 Getting Effective Transmission Built on the SPP-MISO Seam MISO-SPP IPSAC Meeting March

2 General Information MISO and SPP have roughly over 60 interconnections most at lower voltage (less than 345kV). MTM payments between SPP and MISO was approximately $9 Million in Predominately from 3 flowgates. 2

3 3

4 Congested Flowgates Some of the recurring congested Flowgates: Flow Gate FG Name Description Control Zone 2015 Payment to SPP 2015 Payment to MISO MISO 1967 ANOPLHANOMAB Arkansas Pleasant Hill 500kV EEI $2,430,945 $118, 274 ftlo Arkansas Mabelvale 500kV SWPP 5501 CBLS56ROLMAD CBLUFFS - SUB kv ftlo MEC, OPPD $3,273,360 $ unknown ROLLHILS - MADNCO 345 kv SWPP 6126 SUBTEKFTCRAU S1226-Tekamah 161kV flo S3451-Raun 345kV MEC, OPPD $1,045,513 $ 20 4

5 Reminder of what it takes to be an Interregional Project To be an Interregional Project, a Transmission Solution must: Solve Congestion in the Joint Model and agreed upon by SPP & MISO Solution improves congestion in SPP & MISO by at least 5% in each RTO Be selected in the SPP Regional Process 1.0 BC ratio Best solution selected by SPP Be selected in the MISO Regional Process 1.25 BC ratio 345kV or above and Sponsored by the appropriate Zone in MISO if less than 345kV This is very stringent Criteria to build Transmission. (TRIPLE HURDLE) 5

6 Possible Solution for Seams Issues Eliminate the Triple Hurdle for interregional projects. Two (2) Options for consideration: 1. A new project category for interregional projects could be incorporated in the SPP and MISO Tariff to allow for approval and cost allocation of beneficial interregional projects identified through regional studies. This would include lower voltage alternatives down to 100kV. 2. Changing the benefit metrics or requirements for interregional projects in the regional study if both a interregional and regional study is done. 1. APC doesn t capture all the value of transmission along the seam. 2. Other possibilities include: Avoided Cost, Net Load Payments, Reduction of Emission Rates and Values, Reduced 6 Operating Reserves Benefits,.

7 Possible Solution for Seams Issues Consider changing cost allocation between regions after benefits are determined in the regional process. The project costs that are allocated to each region based on the results of the interregional study could be adjusted based on the results of each regions study if the triple hurdle remains in place Minimal impact to the current process (post regional analysis) Common sense discussion between SPP and MISO based on Regional Study results A beneficial transmission project gets built 7

8 Key Takeaways There are congested flowgates across the SPP- MISO Seam that will need to be addressed in the near future. Triple Hurdle needs to be eliminated. Two Possible solutions New Interregional project classification New Metrics for interregional and regional evaluation Consider changing cost allocation between regions after benefits are determined in the regional process. 8

9 APPENDIX 9

10 Net Load Payments (NLP) Per MISO-PJM JOA The NLP benefit for each RTO represents each RTO s gross load payment minus the estimated value of congestion-hedging transmission rights in each RTO: Multiply the LMP at each modeled load bus in the RTO by the load (in MW) at the bus, for each simulation hour (load LMP * load (in MW)). Subtract from that value the estimated value of congestion-hedging transmission rights for that hour. RTO s congestion-hedging transmission rights shall be calculated by subtracting the RTO generation-weighted LMP from the RTO load-weighted LMP For each simulation hour. Then multiply this difference by the lower of the RTO s total generation MW level or the RTO s total load MW level. Source : 10

11 M2M YTD Settlements Source: SPP SSC January Meeting 11

12 M2M Settlements by FG Type 2D instead of 3D Source: SPP SSC January Meeting 12

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